Salesforce Reports Strong First Quarter Results for Fiscal 2024

Salesforce, the leading provider of customer relationship management (CRM) solutions, has announced its financial results for the first quarter of fiscal 2024, which ended on April 30, 2023. The company reported a revenue of $8.25 billion, representing an 11% year-over-year increase and a 13% increase on a constant currency basis. This growth is a testament to Salesforce’s continued success in the market.

The company also achieved a GAAP operating margin of 5.0% and a non-GAAP operating margin of 27.6% in the first quarter. These figures demonstrate Salesforce’s commitment to improving its operational efficiency and profitability. Furthermore, the current remaining performance obligation stands at $24.1 billion, marking a 12% year-over-year increase on both a nominal and constant currency basis.

Earnings per Share and Share Repurchases

Salesforce reported GAAP diluted earnings per share (EPS) of $0.20 and non-GAAP diluted EPS of $1.69 for the first quarter. Additionally, the company returned $2.1 billion to its stockholders through share repurchases, highlighting its dedication to delivering value to investors.

Strong Guidance for Future Quarters

Salesforce has provided guidance for the second quarter of fiscal 2024, with projected revenue in the range of $8.51 billion to $8.53 billion. This represents a year-over-year growth of approximately 10%. The company has also reiterated its full-year revenue guidance of $34.5 billion to $34.7 billion, reflecting a similar growth rate.

Moreover, Salesforce has raised its full-year GAAP operating margin guidance to around 11.4% and its non-GAAP operating margin guidance to approximately 28.0%. These upward revisions demonstrate the company’s confidence in its ability to further enhance its profitability.

Salesforce’s Vision for the Future

Marc Benioff, Chair and CEO of Salesforce, expressed his enthusiasm about the company’s performance and future endeavors. He highlighted Salesforce’s focus on incorporating trusted and secure generative artificial intelligence (AI) across its entire product portfolio. By leveraging technologies like Einstein GPT, Slack GPT, and Tableau GPT, Salesforce aims to revolutionize the CRM industry and empower its customers with intelligent automation and enterprise enhancements.

Financial Highlights of the First Quarter

During the first quarter of fiscal 2024, Salesforce achieved several notable accomplishments. The company’s total revenue reached $8.25 billion, with subscription and support revenues amounting to $7.64 billion, and professional services and other revenues totaling $0.61 billion. The GAAP operating margin for the quarter was 5.0%, while the non-GAAP operating margin stood at 27.6%. The company generated $4.49 billion in cash from operations and reported a free cash flow of $4.25 billion.

Furthermore, Salesforce’s remaining performance obligation, an indicator of future revenue, increased by 12% year-over-year to $24.1 billion. This robust growth reflects the strong demand for Salesforce’s products and services.

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Looking Ahead

Salesforce has provided forward-looking guidance for the second quarter of fiscal 2024 and the full year. The company’s projections are based on its current understanding and assume no significant changes to the value of its strategic investment portfolio. It is important to note that the guidance is subject to fluctuations in GAAP tax rates and other factors.

Salesforce remains committed to its mission of helping customers increase productivity, drive efficiency, and become AI-driven enterprises. With its continuous innovation and strategic investments, the company is poised for sustained growth and success in the CRM market.

Exciting Product Releases and Enhancements

Salesforce’s commitment to innovation is evident in its regular product releases and enhancements. The company invests significantly in research and development to deliver cutting-edge solutions that drive cost savings, boost efficiency, and foster trust. The recent Spring’23 Product Release showcases Salesforce’s dedication to providing customers with the best-in-class CRM solutions.

For more information on Salesforce’s product releases and highlights from the Spring’23 Product Release, visit: www.salesforce.com/products/innovation/spring-23-release/

Conference Call Details

To discuss its financial results with the investment community, Salesforce will host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET). The event will be broadcasted live on the Salesforce Investor Relations website at www.salesforce.com/investor, where details for accessing the webcast and replays can be found.

As Salesforce continues to thrive and innovate, the company remains dedicated to empowering businesses worldwide with its industry-leading CRM solutions and driving the next major revolution in the field of customer relationship management.